Canadian Dollar Dropped its Growth, Traders Waiting for Bank of Canada Statements
Traders are waiting for the bank of canada’s statement over the CAD. The Canadian dollar that was moving with high strength has dropped its progress in the last week of October. But despite heavy a weak week, the currency has got dominance over the US dollar, British pound, Euro, and Japanese Yen since June. It’s a matter of great concern for traders that the cash will benefit from the downfall and it’s going to increase in November month.
The currency of Canada offers the benefits from the global rising inflation situations as the prices of energy; commodities are rising and doing great. West taxes intermediate has leveled the position since 2014. The Canadian commodity can affect the local inflation and monetary policy too. There was a growth of 4.4% was seen in the last week’s CPI data as compared, which is also great news for the Canadian dollar. This has grown after a long time since the year 2003.
With the data that came out regarding inflation, everyone was waiting for the decisions taken by the Bank of Canada on Wednesday. The bank is not focusing on changing the lending rates that are at present at 0.25%. However, the bond prices of Canada are moving to be lower from 2B Canadian dollars to $1B. This data will boost the price of the trade by the end of the next year.
The bank of Canada policy is going to be applied on the dollar in the middle of Sept and it could be unpleasant for the traders. This thing will happen when the bank sees the inflation trends for upcoming consecutive times. Despite all these, this may not satisfy the traders who support the Canadian dollars as of now.
All the eyes are now on United States earnings where the powerful companies like Facebook, Apple, and Amazon will make a difference in the currency. Let’s see what the bank of Canada will say about the situation in the coming weeks.